Polymetal International plc has acquired Lichkvaz property in Armenia
Polymetal International plc is pleased to announce that it has increased its interest in the Lichkvaz property in Armenia to 100%.
Polymetal purchased an additional 75% stake in the company holding Lichkvaz property in Armenia, and increased its ownership from 25% to 100%. The consideration comprises 1,084,853 Polymetal shares equal to US$9.7 million (0.26% of increased share capital). Details of the Transaction on the acquisition of a 25% stake can be found in the Company's announcement from 15 April 2015.
The decision to increase the Company's interest to 100% was taken following successful results of exploration drilling performed during surveying season 2015.
Drilling has been completed, with 15,800 metres drilled across 70 diamond drill holes. To date, samples taken from 20 drill holes have been analysed (representing c.25% of total number of samples). Based on the first data obtained, nine productive intersections have been discovered with the average grade of 6.4 g/t GE per average true width of 4.5 metres.
The Company plans to further analyse exploration data obtained during 2015 and to prepare a resource estimate (JORC compliant) for release in Q2 2016.
Lichkvaz is located in the Meghri area of the Syunik-Marz province of southern Armenia, 380 km south of Yerevan. The infrastructure in the area is developed with power, water, accommodation and skilled labour force available.
A previous resource estimate (not JORC compliant) puts the total mineral endowment of the property at 2.4 Mt of material at 6.9 g/t in the inferred category for approximately 0.5 Moz of gold equivalent contained.
The geology of the project is characterised by a series of near-vertical shears and steep westerly dipping vein sets ranging up to 4-5 metres in width, hosted in andesite. The strike length of the system is about 800 metres, with northern extension covered by glacial till. The Lichkvaz property area is a part of the Tethyan Belt. The Company believes that property retains significant exploration potential.
As а result of the issuance of consideration shares, Polymetal's share capital will comprise 424,650,138 shares following the issue. Аn application has been made to the London Stock Exchange and the UKLA and the shares issued as consideration are expected to be admitted to trading on or around 18 November 2015.